QQQ vs WEBS
Invesco QQQ Trust, Series 1 vs Direxion Daily Dow Jones Internet Bear 3X ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | WEBS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.07% | |
| AUM | $455.8B | $8M | |
| Dividend Yield | 0.41% | 2.83% | |
| Holdings | 108 | 6 | |
| YTD Return | +19.68% | -34.28% | |
| 1Y Return | +26.75% | -30.31% | |
| 3Y Return (annualized) | +26.25% | -50.62% | |
| 5Y Return (annualized) | +15.39% | -36.70% | |
| Volatility (annualized) | 30.6% | 65.6% | |
| Max Drawdown | -83.0% | -99.7% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Nov 7, 2019 |
QQQ vs WEBS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Dow Jones Internet Bear 3X ETF (WEBS) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +26.75% while WEBS returned -30.31%. Year to date, QQQ is up 19.68% versus a loss of 34.28% for WEBS.
Over three years, QQQ compounded at +26.25% per year against -50.62% for WEBS; over five years the annualized figures are +15.39% and -36.70% respectively. Across the full 7-year window we track, QQQ has the edge at +13.15% annualized vs -52.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEBS has been the more volatile fund, with annualized monthly volatility of 65.6% compared with 30.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -83.0% for QQQ and -99.7% for WEBS. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.85. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while WEBS charges 1.07%. On a $10,000 position that is $18 vs $107 annually, a gap of $89 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.83% for WEBS.
Holdings Overlap
QQQ and WEBS share 0 holdings out of 105 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or WEBS?
QQQ has an expense ratio of 0.18% while WEBS charges 1.07%. QQQ is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, QQQ or WEBS?
Over the past year QQQ returned +26.75% vs -30.31% for WEBS, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +13.15% vs -52.79% for WEBS. Past performance does not guarantee future results.
Which is riskier, QQQ or WEBS?
WEBS has been the more volatile fund at 65.6% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs WEBS -99.7%.
Should I hold both QQQ and WEBS?
QQQ and WEBS have a monthly-return correlation of -0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and WEBS?
QQQ and WEBS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, QQQ or WEBS?
QQQ yields 0.41% while WEBS yields 2.83%, so WEBS currently pays the higher dividend yield.
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